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Supervisory Board Rejects Blume's Plant-Closure Plan as Company Limits Some Cuts

The supervisory board voted 12-7 to reject CEO Oliver Blume's plan to close Emden, Hannover, Neckarsulm and Zwickau and to eliminate more than 100,000 jobs, weakening his authority within Volkswagen.Board opponents included the works council and employee representatives, plus the state of Lower Saxony, while the Porsche/Piëch family sided with management on the need for deep savings.Volkswagen will still move ahead with measures that do not require supervisory approval, including halving the model range to 73 and cutting variants by up to 75%, as management seeks B in annual savings to confront weak electric-vehicle margins, US tariffs and Chinese competition.Unions staged coordinated protests at multiple sites, and management says it may call an extraordinary shareholders' meeting to override the board if the company is judged to face an existential crisis.
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